Rising construction costs are reshaping buyer behaviour on the northern Gold Coast with the demand for new-build and recently renovated homes surging as the price of building from scratch climbs. 

Not long ago, a buyer chasing a waterfront home in Hope Island would typically start with a block of land: buy well, engage a good architect, find a reliable builder, and build the home they wanted.  

According to Sales Agent Josh Finch, who operates within Hope Island Resort and Sanctuary Cove, that conversation has changed. 

“Construction costs have moved so far from where they were pre-pandemic that building a dream home has quietly slipped down the list of options for many buyers,” Mr Finch said. 

Australian Bureau of Statistics data from June shows construction output costs in Queensland are 58 per cent higher than before the pandemic and are the highest of any state in the country. 

Mr Finch said that, on the ground, the rise had led to square metre rates almost doubling, from around $5,000 to $9,000 and that’s before land, design or holding costs were factored in. 

“We do not expect the numbers to come down anytime soon,” he said. “Trade shortages remain real and with the Brisbane Olympics pipeline competing for the same labour, that cost base is beginning to look permanent rather than temporary.” 

As a result, enquiries for finished, low-maintenance homes have risen sharply, with land values and replacement build costs becoming an increasingly central part of negotiations. 

Mr Finch pointed to the recent sale of ‘Serenity’, a new architect-designed home on Harbourview Drive, Hope Island, as a clear example of the trend, with the buyers choosing a finished, low-maintenance property over the time and risk of sourcing a vacant block and building. 

“At present, buyers are judging a property less against what has sold nearby and more against what it would take, in terms of money and time, to purchase the land and build the same thing or something similar,” he said. “In many cases, the costs just don’t add up. 

“In a plus for sellers is that many completed new-build homes or properties that have been renovated to a high standard offer exceptionally good buying for anyone looking to purchase in today’s market.” 

Mr Finch cites ‘Solaris’ on Cressbrook Drive, Hope Island Resort, on the market for $10.95 million, as an example of value that will soon be difficult to replicate.

Architect-designed by Jared Poole on a block north of 1,000 square metres, and a floor plan to match, the home features Carrara marble and Greek stone, bespoke joinery, elevated entertaining areas, world-class wellness facilities and direct access to the Coomera River. 

“It would be difficult to reproduce this, even today, to the same standard for the asking price,” he said. 

Despite the shift towards turn-key homes, Mr Finch said the bottom had not fallen out of the second-hand or renovator market – the demographic is simply changing. 

“Older homes on good blocks will always hold value, but if a home requires a significant amount of work, a buyer needs to know there is enough upside left to justify taking on the construction risk,” he said. 

Mr Finch said those opportunities were increasingly being taken up by owner-builders, who have trade connections that allow them to control construction costs and build within set margins. 

“For most other buyers, completed homes give certainty around cost, quality and timing, and in the current construction environment that has become increasingly important,” he said. 

If you want to learn more about what is happening in the northern Gold Coast market, reach out to area specialist and sales agent Josh Finch.